hello. welcome to "street signs." i'm carolin roth. these are your headlines. president donald trump comes out swinging telling a news conference that the russia probe is dividing the country and calling any talk of impeachment "totally ridiculous." >> i respect the move, but the entire thing has been a witch hunt. there's no collusion between certainly myself and my campaign, but i can always speak for myself and the russians. zero. duty-free spending spree. shares of dufry top the stoxx 600 as richemont takes a 5%

stake. polls open in the iranian elections where hassan rouhani is seeking a second term, but challenger ebrahim raisi has gained momentum with his close ties to the supreme leader. good morning, everyone. yes, it's friday, finally tried. tgif is what most of you must be thinking, and on capitol hill given the drama unfolding there. the stoxx 600 is recovering slightly from the big selloff we saw this week. up by a third of one percent roughly one hour into the trading session. for the wreak we are on course for a 1.5% loss. that is the worst week for the stoxx 600 in six months since november.

given all the concerns about whether donald trump can still enact many of his policies, like tax reform and infrastructure spending. want to show you what the sectors are doing this morning. we have most trading in positive territory. basic resources, autos doing well. rebounding from yesterday's weaknesses. retail, telecoms showing slight under-performance. let's remind you what happened in the u.s. markets yesterday. u.s. markets did bounce back nicely. the dow jones up by 0.3%, to 20,20 20,663. the s&p 500 up by 0.37 after some big falls on wednesday. the nasdaq yesterday rising by 43 points, up by 0.7% on the day. let's get back to what happened in the white house yesterday. not a whole lot of drama, but

here's this. president trump defended his administration in a press conference last night calling the appointment of a special counsel taking over the russian investigation a witch hunt that guid divides the country. hallie jackson has more. >> reporter: tonight, new reaction to the special counsel taking over the russia investigation. >> i respect the move but the entire thing is a witch hunt and there is no collusion between certainly myself and my campaign, but i can always speak for myself and the russians, zero. i think it divides the country. >> reporter: at his first press conference after a series of bombshell reports, presidential pushback. >> did you at any time urge former fbi director james comey in any way shape or form to close or back down the investigation into michael flynn? and also as you look back -- >> no, no. next question? >> reporter: on defense and on the record, president trump denying james comey's version of what happened before he was fired.

according to sources who saw a memo comey wrote about a meeting with the president. president trump again revisiting why he fired comey in the first place. the night it happened, he pointed to a recommendation from the deputy attorney general. later, he told lester -- >> i was going to fire regardless of recommendation. >> reporter: now? >> director comey was very unpopular with most people. i actually thought when i made that decision and i also got a very, very strong recommendation, as you know, from the deputy attorney general, rod rosenstein. >> reporter: on capitol hill rod rosenstein acknowledging his role. >> he knew comey would be removed prior to him writing his memo. >> reporter: for the president, his public venting about that so-called witch hunt, undercutting the message from his own aids about the special counsel. nbc news has learned that reince priebus in the oval office urged team trump to turn the page and focus on the president's agenda. according to a senior administration source.

still, speculations swirling about a possible shakeup, the spotlight on embattled press secretary sean spicer. two top white house aides tell nbc news the president is considering having his deputy, sarah huckabee sanders, play a larger role in day-to-day briefings. >> he should have people out defending decisions, defending choices, advancing his agenda but when they can't trust he will not have undermined their public statements, it's difficult for them to say much of anything. >> that was hallie jackson reporting from washington. we've got greg peter around the desk. good morning to you. >> good morning. >> that was a tumultuous week, not only for president trump but also global investors. where do we stand now? what did we learn from this week? we still don't know whether the trump trade will continue in its current form. >> i don't think it can continue in its current form to be frank. so much has been baked in post election around policies. so each and every week that timeline gets pushed out. best case scenario.

worst case scenario, just to have continued tumult. it's not just about the u.s. this week, you've seen turmoil in brazil as well. if you look at the investor flows, one of the most dramatic inflows we've seen this year, and post-u.s. election, that been in the e.m. and brazil is the largest area to invest. >> so that tells you that was too premature? >> you know, it says to me that the markets are a little more fragile than shown this week. yes, it's been weaker, but, you know, these are longer tenor type of stories. these are not just going away tomorrow. the headlines will persist. the political piece is really infiltrating the ability to get any policy done or any reforms. >> let's get back to the trump trade. a lot of it has been unwound as question marks arose over whether tax reform, whether infrastructure, whether the

healthcare reform can be enacted. we've seen that big reversal when it comes to the dollar and also treasuries. we still have a bit of a trump premium in equities. do you think that will be taken out over the next couple of months? >> i think so. first quarter earnings were quite spectacular. well above what investors were thinking that they would be. keep in mind, it was off a low base. the hurdle was exceedingly low. so it was above that. so i think the comps are getting more difficult. so i do think there is some excess in some of the risk markets. the rate market is interesting. so just go back to the election night in the u.s. the ten-year treasury hit 170. >> yeah. >> so then moved to 270. >> now it's back down to 2.3. >> so i think the initial snap reaction might directionally be more correct than the 2.70.

>> you are long u.s. rates, that's not the market consensus now. why? >> for exactly that. the policies put in place or talked about were something that were never believed in. honestly the friction in just the global marketplace is really quite high. so you have the demographic issue. too much debt. the growth dynamics are not, you know, lending itself to a 3%, 4%, some people are talking about 6% growth. you know, that's the first piece. the second piece honestly is inflation. people have extrapolated late last year in january and february and went to this new trend line in inflation. i think they're not looking forward, they're looking back. i think inflation peaked globally in february. what does it say about the fed? i read a piece by mizzou, if trumponomics fails, that's a disappointment to the market. they say the nuclear outcome is if the fed abstains from hiking

further, tightening further and producing its plans sheet. how problematic for the markets would be? if it's not warranted by higher inflation? >> i don't see that as the predominant risk. the risk we should be more worried about is the fed dogmatically hiking, and hiking the u.s. into a recession. that's a far bigger risk than not doing anything. the market is divided around this. on one end you have investors such as myself who think the fed will be slow and not necessarily dogmatic and just continuing to hike. and then there's others who really believe they'll hike and reduce the balance sheet aggressively. that's why net-net, i believe that rates in the u.s. are poised to go lower, not higher. there is a difference. investors are often confused by short-term rates moving higher, doesn't mean long-term rates move higher. it's just the opposite. i think the curve will flatten

in the u.s. and if the fed is more aggressive, it will flatten more. >> finally, we've seen a boom in the corporate kred by tcredit m europe, do you buy into this market or is it too high post the macron win? >> you know, the investment grade corporate market has been quite robust for quite some time in terms of issuancissuance. so companies are feasting on this low-rate environment so they have taken on a lot of debt. apple is a great example. if you go back, just call it five years ago, they had zero debt. now they have 95 billion. that's one piece of it. the other piece is that they have three times as much cash. somewhat ironically they're actually the biggest corporate bond investor in the planet. so they're bigger than the largest fixed income fund. so, they're investing. they have a lot of cash and debt. the big change in the investment

grade corporate market are the tech companies that historically have not had debt on their balance sheet. have taken on a lot of debt. >> you say that might continue it is not just confined to apple. >> i think it will continue. >> greg peters, thank you very much for that. let's get back to some corporates in europe. shares in dufry hit a 6.5 month high after richemont bought a stake in the retailer. the chairman of the swiss luxury goodsmaker said his company had been mulling an entry into the sector. shares in k&s are trading higher on speculation that the chemicals firm could spin off its salt business. speaking at the bmo investor conference in new york, the ceo said the company will make a decision on a potential salt ipo this fall. get this. this is pretty extraordinary. a painting by the french artist

jean micheel basquiat sold for 1 1$110 million. the new york auction broke a number of records including the most expensive work that any american artist and the first piece created since 1980 to break the 1$100 million mark. would you spend this much if you had the money on a piece of art? e-mail the show. the address is streetsignseurope@cnbc.com. you can find you the on twitter, @streetsignseurope@ cnbc and tweet me @carolincnbc. brazilian stocks and the real tumble as a fresh corruption scandal threatens president temer. much more on this after the break. cdw brought i.t. orchestration to printing, dramatically increasing print security with enterprise printers by hp. which is great,

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welcome back to the show. ahead of president trump's inauguration, the ceo of rushing s russia's biggest bank, sberbank said trump was a man of change. geoff sat down with him. >> you know, you and i were talking about the fact that he's a businessman and has never been a politician and that the initial period of office will be very difficult for him. because he will have to adapt himself to his new role, and the speed of this adaptation, and the extent to which he will adapt will affect his future ability to act. currently we see that we are very much in this period. not much time has passed. it's still too early to say how successfully or quickly he's adapting. i think we should return to this

discussion in about a year. for the time big, it's too difficult to talk about any changes. it's clear that the nervousness that we see in the media is eliciting a similar reaction in society. naturally this is reflected in the behavior of trump's administration. for the time being, there is little chance of there being any changes in u.s./russian relations. but i think that this period of high emotion should finally come to an end. then we will be able to return to normal relations. >> do you worry that as a russian businessman who has met mr. trump in the past, and has hosted him for dinners, do you worry that there will be some focus that falls on you because of those past meetings? it seems now that everything is

game as far as the washington investigations are concerned. >> no, i don't have any worries in that respect. you know, i don't fully understand what is going on in the u.s., because in order to be able to ascertain the situation in the u.s., you have to be there. from what we see here in russia and from the programs we see from the u.s., the unfolding situation is fairly complex. there are certain signs of a certain paranoid attitude to russia and to every single contacted with russia, real or imagined. i don't number myself among those people. well, firstly, trump is a

businessman and so am i. it was very difficult to envision in our meetings back then that he would become president. what things might have system how aft somehow affected his president is he three years later, or our conversations may have led to some exchange of information. this is, of course, i think the situation has become extremely paranoid for one to suspect these sorts of contacts could lead to political consequences. >> i take it from the way that you're laughing that there's nothing really for you to be concerned about with any of these congressional investigations. >> translator: i have no concerns whatsoever. the ceo of russia's second largest bank vtb expressed

bewilderment towards russia. >> it's not a house of kacard s it doesn't allow mr. trump to build any policy at all with russia. meeting the russian ambassador or meeting the foreign minister is viewed as nearly a crime for any american officials. it's difficult to conduct any relationship under the circumstances. i don't know what people want, nuclear war between the two superpowers or something else. on the left of ordinary people in america and business people in america, we face very good response. we work very constructive and have very good dialogue. >> in other news, the u.s. imposed sanctions on venezuela's supreme court and its chief judge in response to the country annulling the opposition-led

congress. treasury secretary steve mnuchin said the measures were a result of venezuela's consistent interfering with the legislative branch's authority. venezuela's foreign minister called the move unacceptable and outrageous and a violation of international law. brazil's stock market closed nearly 9% lower after the supreme court decided to investigate president michel temer for allegedly approving bribes for a potential witness in a corruption kroprobe. the investigation following an audio recording of temer meeting with the meat packer of jbs to obstruct justice. temer denies any wrongdoing vowing he will not resign. head to cnbc.com for more on the scandal in brazil. in video has been released that shows turkish president erdogan watching from a distance as turkish personnel clash with armenian protesters outside the

turkish president's residence this week. this following unanimous calls for erdogan to discipline members of his security detail involved in the altercation. the greek parliament has passed new austerity members from unlocking debt from greece's creditors it was backed by all of alexis tsipras's coalition to get it across the line. protesters clashed with police in athens during a second day of demonstrations ahead of the vote. the majority of the 15,000 people remained peaceful in a walkout called for by trade unions a day after a general strike. steel futures hit a six-week high in asian trade amid growing expectations that the chinese government is prepared to take supply out.

>> what we do is not look at short-term, even up to two or three months can be affected by volatility in the short-term market, particularly by derivative trading. so we look at the longer-term trends. if you look at the longer-term trends, it's been consistent. unfortunately our product suffers from volatility and short-term price. i think at the end of the day, that really doesn't matter. it falls back to the fund fundamentals of spupply demand. >> we look look at billiton, rio tinto and your firm, it's not always been an easy path. your fortunes looked differently a few years ago. had to tap the markets to raise some money. but you paid a premium. 2.3 billion raised in bonds, 9.7% per annum on the interest rate.

in the past week, you raised another $1 billion, but at 5% per annum. tell us about the turnaround. >> it's happy times right now. we were caught, i think, a couple years ago with a massive downturn in the oil price. the u.s. high yield market is heavily focused on energy. shale gas, shale oil, oil generally. we were caught in that downdraft. our timing into the market could not have been worse. so i think that's the biggest impact we had with the high-priced bonds. sometimes it's the price you pay, i guess, for using debt to fund the expansion of the business. for us, we think that strategy has played out extremely well. today we're in a strong position where we divvied the balance sheep rapidly, we own 100% of the business and have been ability to expand rapidly by

using debt and repaying it. >> we will go for a quick break. do check out world markets live, our blog which runs throughout the european trading day. we'll be back with more "street signs" after this. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward.

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hello. welcome to "street signs." i'm carolin roth. these are your headlines.

president donald trump comes out swinging telling a news conference that the russia probe is dividing the country and calling any talk of impeachment "totally ridiculous." >> i respect the move, but the entire thing has been a witch hunt. there's no collusion between certainly myself and my campaign, but i can always speak for myself and the russians. zero. duty-free spending spree. shares of dufry top the stoxx 600 as richemont takes a 5% stake in the travel retailer. k&s shares get flavor in trade on speculation that the chemical firm could spin off its salt business. polls open in the iranian elections where hassan rouhani is seeking a second term, but challenger ebrahim raisi has gained momentum with his close ties to the supreme leader. good morning, everyone. yes, it's friday finally.

that's what many of you may be thinking after we had a tumultuous week with many revelations about the white house. a lot of back and forth here and what we saw in global markets is that we saw a shock, a big selloff for the u.s. markets, but also for the european markets. we are on track for a 1.5% loss here. today it seems like we're recovering a tad. the ftse 100 is getting closer to the 7,500 level, which it was able to breach earlier this week. we're up by 0.3% on the day. the dax up by a timlsimilar percentage. the cac 40 is up by half of a percent. when it comes to the fx markets, you see that the dollar is still under a bit of pressure against the japanese yen. 111. that's the trade. for the week, we're looking at a loss of 1.7% for this particular currency pair. that's the biggest weekly fall in a month. given all the drama, the turmoil happening around washington. euro/dollar clinging on to the

1.11 handle. up 0.4% on the day. brazilian real is still a tad lower, but it by in large has recovered from the 8% losses yesterday given the investigation into the brazilian president on potential corruption. let's take you back to the u.s. futures. we are roughly four, five hours away from the start of the u.s. trading session. the s&p 500 seen off by 2.7 points. the dow jones could extend yesterday's gains by 20 points. the nasdaq seen off by 11 points this as stocks closed higher yesterday recovering from the worst day of 2017 on wednesday. now, president trump is scheduled to meet with king salman of saudi arabia this weekend to kick off talks between the u.s. and saudi governments. we know the saudis wanted to be rolling out the red carpet for

trump. >> that's right. it's just what they're doing. i'm joined by the editor and chief of arab news, faisal abas. this is a historic trip for the president, and for saudi arabia, isn't it? >> not just for saudi arabia, but indeed there's a bilateral summit between saudi arabia and the u.s. we know saudi arabia is going through a transformation process, so there's a lot of business opportunities and a top ceo meeting happening between u.s. and saudi businessmen. however, there's also a gcc u.s. summit and the arab islamic u.s. summit. so, it's quite a historic visit in the sense that it's kind of a one top shop for the trump administration to set his agenda on the kind of challenges facing the region. most of which have been developed through the obama era. now it's time to reset relations, realign the alliances, try to fix as much as we can.

the advantage is the trump administration actually now has tools to deal with. saudi arabia established the military alliance to combat terrorism with over 30 muslim countries, and saudi being the holder of the mosque, which gives it background to face terrorism. >> so president trump is facing noise back at home. but it's interesting to note he's planning on giving basically a speech to address the whole muslim world. how do you think that will go over? >> i think it sends a very good message. it is an endorsement to moderate muslim states. the fact that he's chosen saudi arabia to be his first ever visit shows you clearly that the united states unlike some people want to portray is not at war with islam. is not at war with the arab world. we are both, as arabs, muslim ab

r rabs and the united states are against terrorism. >> it's also about the mega trade deals, not just the massive multibillion dollar spending in terms of military equipment, but trade deals between saudi aramco, the biggest names in finance will be here. what do you reasonably expect will come from this weekend? >> as i just said, there's been a vision that has been announced for saudi arabia to transform the economy to do a lot of social reforms as well. what better ally can we have than the united states in this kind of transformation. not just in the sense of kind of long lasting relationship, but as well as expertise. six flags is coming here to set up the entertainment industry in saudi arabia. you know, these deals kind of -- the best way to acquire talent, best way to transfer knowledge and talent is to acquire and sign joint ventures. so, the kind of vibe here is that there's a positive

attitude, particularly with the kind of license to operate without saudi kind of sponsor in saudi arabia. so that hopefully gives some incentives for the big companies and the smes to come here and help with the transformation process, creating a win-win situation whereby they create revenues and profits as well. >> a lot of momentum in terms of the business conversation. in terms of the regional threats to stability. iran is on everyone's mind as they go through the election process. and as a strategic partner, saudi arabia is hoping the u.s. will take a firmer hand in syria and yemen. talk to us about the greatest threat to regional stability, is it iran or the price of oil? >> the price of oil is being fixed. there's a plan to diversify the economy. we're looking at new resources, new sources of revenue. the best time to reform is when your back is against the wall. the only good thing that came out of the crisis that created

the oil prices has created is that it forced and fast tracked reforms which we've been hearing about for 20 years. i would go with iran. if you look at most of the regional problems, you look at syria, there's iranian fingerprint there's by supporting assad. you look at yemen with the militias which is not only destabilizing yemen, attacking saudi arabia, but recently attacked the u.s. navy three times. so wherever you look you find iranian fingerprints all over the place. what has the previous administration done? they unshackled them with the iranian nuclear deal. nobody thinks a nuclear iran is a good thing. we wanted to negotiate the terms so that we can curb the kind of iranian damaging ability. >> big questions to be answered over this weekend. thank you very much for joining us. >> thank you. >> back to you. >> hadley, thank you very much for that. iranians head to the polls today to choose their new president in what has been a bitterly contested campaign

between hassan rouhani and his challenger, ebrahim racy. discontent among rouhani's failure to stimulate nuclear growth has strengthened raisi's hand. let's get out to ali. it seems like a big ideological divide between the two candidates. >> there is a divide and the two candidates represent a two different irans. president rouhani who made an outreach to the west and wants iran to look outward, has encouraged foreign investment and a more moderate stance on social restrictions on iran is trying to get a second term if there is not a big voter turnout, that will hurt him, because usually here low voter turnout helps the hard-liners.

the high voter turnout always helps the reformists. when he made the nuclear deal in 2015, he was a shoe-in to get the second term again. it's going to be a tough battle for him now. the hard dish line candidate, ibrah ebrahim raisi has put out strong campaign videos, tried to muster the working class, and they want to defeat rouhani by any means. they're trying their hardest to do so. the two represent a different iran. if raisi was to come to power, he would represent a much more conservative iran looking inward as the supreme leader said. he said iran needs an economy of resistance, should be self-sufficient and raisi strongly backs that notion. i don't think he'll make an outreach to the western community. if there's any renegotiation on

the nuclear deal, he'll firmly put a lid on that. it will be a different iran. we heard stories that his foreign minister could possibly be the former nuclear negotiator and was famous for not negotiations. so it will be a very, very different government if he comes in. a much more harsh attitude towards the west. we have to see what happens today. i think a lot of young western sort of secular type iranians are a bit worried about a raisi presidency, and the numbers at the polling stations seem to be building up in northern tehran, which traditionally favors rouhani. the numbers are building up there. but we have teams across tehran right now who will be updating us on reports on polling stations that favor raisi a little later in the afternoon. we may get a better picture of which side the eelectorate will be going for. back to you. >> ali thank you very much for

that. let's continue this discussion with the managing director for the middle east and north africa at tenao intelligence. many iranians are frustrated given the lack of economic growth, despite the roll back of sanctions. does it give enough ammunition to the challenger, mr. raisi? >> clearly. while the supreme leader has stepped just shy of endorsing raisi, has essentially created his candidacy. three months ago talk to any iranian, rouhani was odds-on favorite. raisi has been promoted by khomeini. even before that, raisi probably would have come third in a first round. he's a constructive candidate, representing as ali just said, representing a more conservative view, a more inward looking view

of iran. iran is not naturally an inward looking country. the experience of multiple layers of sanctions over decades has tended to foster a strong suspicious tendency among the population. so raisi's message is not without strong populist support. i think raisi again, the turnout is crucial here. if we look at 70% plus, which is what rouhani's people think they will get that will be -- that would favor the president. much less than that and we might be seeing a more conservative outcome. of course you look back to 2009, where the apparent favorite mr. mousavi lost in a landslide. that led to six or eight weeks of serious riots and protests, mr. mousavi is still under house arrest. >> let me pick up on that point. is there a risk that we'll be seeing riots on the street again if raisi wins this election?

it could be seen as a rigged election because he has been backed by the supreme leader. >> is an element of support on both sides that would see the wrong result as being the consequence of vote rigging. certainly i think if ebrahim raisi is president in three day's time there will be a strong element of the moderate group who feel that's the result of voter manipulation and it's likely we'll see protests. then it konl comes down to wha losing candidate does. rouhani, liunlike mousavi, is a part of the establishment, he would likely go out and try to calm those protests that would work in the favor of the regime in the longer term. >> let's talk about what the market and investors are worried about. that's oil prices and the nuclear deal. if we see a toughening of sanctions once again that could support the oil price.

trump has said the nuclear deal is disastrous and he wants to dismantle it. so far he has not done that. this week he extended the sanctions relief. is there any risk that under raisi we so see sanctions being enforced again? >> i think that raisi's president would be meat and drink to the nuclear deal skeptics, particularly the united states. i think the approach of the trump administration will be to issue the waivers as required by the letter of the deal, but push for rigorous implementation. any fallback on the iranian side would provide an opportunity to ratchet up sanctions again. now, the u.s. has so little commercial contact with the islamic republic that u.s. sanctions alone do very little what they do do is deter particularly foreign financial institutions from presenting -- >> banks, for example. >> yes. the biggest single impediment to major non-u.s. investment in

iran at the moment is a lack of a top or second tier international bank prepared to act as a correspondent to the embassy. u.s. fury at iran, ratcheting up rhetoric and sanctions would not necessarily affect ongoing trade between the u.s. and iran, because there's so little, but it will continue to deter international financial institutions from acting as correspondent entities for big investment deal. so trade would continue, but the multibillion dollar investments that we hear about being planned, where there are memoranda of understanding in place, those would still not go ahead without a suitably sized correspondent bank prepared to act on the deal. there's still a lot of skeptics in washington and across the u.s. when it comes to the nuclear deal, even though trump, as i said before, extended the sanctions rollback this week is there a sense they could extend president trump to extend those

sanctions? >> the sanctions put in play in 2011 and 2012 that were so effective and forced iran back to the table, created the context of the nuclear deal, those sanctions were as effective as they were because the obam mra administratia admi convinced countries like the uk, like germany to cooperate. the u.s. acting loonu unilat ra prior to that had by theal success. the opportunity to convince those skeptics on the sanction toss go back to reinstating sanctions, they're a long way away from doing that when you listen to the foreign ministries in beijing, in london and in germany. you're not hearing minute centers ready to go on reinstating sanctions.

the trump administration will have work to do to reconstruct that cole lig. coalition. >> thank you very much. just on the oil market, steve will be live from vienna wednesday to friday next week for the opec meeting. still coming up on "street signs," can ai drive tech stocks higher? we get a fund manager's view on the sector after this short break. lower a1c is a lot abt chces. t it cane hard sometes 'cifre sides oyou stgg with whicestotoak wewhf you kept makinggood one yould love your ers. scover once-day ®

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to voting for a moment. the market cap of bitcoin is $30 billion. the nasdaq posted its fourth

positive session of five on thursday with apple helping the index higher. it is on track to break a four-day winning streak and will start friday with 1% to make up. let's get out to kathy wood from arc invest and arjun kharpal joins us, too. the nasdaq fell this week, but maybe the performance wasn't as bad as the dow and the s&p. do you feel like tech stocks are more removed from the question as to whether donald trump can implement policies? >> oh, yes, i do. i they what's going on in technology today is astounding. you mentioned artificial intelligence before the break. we had three companies in the last week really focused on artificial intelligence. nvidia, google, ai first instead of mobile first, and last night

salesforce.com. they have einstein, ibm and watson working together. we think artificial intelligence is the great new frontier in technology. it's going to produce outstanding results. want to drill down to some specific holdings. one of those is tesla. elon musk again has come out and said our stock is overvalued. a lot of debate about the valuation of tesla. do you not think it's an overly expensive stock given there are still questions about whether it can hit its targets around the model three production? >> we look at tesla not as an auto stock. those who do look at it as an auto stock are comparing it to the oems and are finding it just ridiculously expensive. we don't look at it that way. we believe it's a technology company. we believe it's going to be one of the biggest leaders in what we call mobility as a service. we put out a white paper in

march about mobility as a service. we think autonomous taxi networks globally will be a $2 trillion market. and they are going to cause natural monopolies. this again is based on artificial intelligence. data is the new oil. tesla is the leader in the united states. it has roughly a $55 billion market cap. this is a $2 trillion global opportunity. i think if people think about tesla in that light, they're not going to think it's overvalued. i know elon musk occasionally throws some cold water and i kind of like that. but we think this opportunity is huge. >> what does that mean for tesla's stock over the next year? >> well, the next year is -- we're focused on the model 3.

i think because of lessons learned from the model x, elon musk has focused the company and structured the incentive system around manufacturering. the model three is a much simpler car. they may not hit 500,000 units in 2018, from 84,000 units in total last year for tesla to go to 500,000 in '18, that would be astounding. technology company, not impossible. nobody is really expecting that. but we think they'll get closer to 500,000 than most people think. >> you also have a key stock pick which is nvidia. i recently read a positive note from ubs analysts about this. they say that the company should remain the market leader when it comes to graphics processing units. 20% faster. that's the new chip valta when it comes to the competition from amd. isn't all of this priced in

already? >> we -- yes. a lot is priced in, especially after their developers conference last week. our analyst was there all week. got the vibe, which was very exciting achltde ing and i thin was up over 20% because of it. it is leading in the artificial intelligence space. on the training side. it had that market pretty much to itself. google came out this week with tensor chip, which will have applications on the training side. maybe we'll have to discount that. our estimate for the deep learning market in 2020 is $11 billion in revenue. ours is 3 billion. nvidia's is 11 billion. they are seeing exponential growth. if they are right, the stock does have a long way to go.

the market is big enough for google and nvidia to share. >> kathy, thank you very much for that. want to thank arjun kharpal, our cnbc technology reporter. let's come back to the oil price and what bank of america is saying in light of the upcoming opec meeting next week. bank of america merrill lynch saying opec will extend cuts and hope demand recovers. if they cut more, they will likely lose additional market share to u.s. shale and prices may not move up more. it's cautious about what an extension of the price cut means. brent crude up by 1.2%. 53.10. wti at 49.92. let's remind you what u.s. futures look like this morning.

we are looking to extend yesterday's rebound. we saw a really positive day for u.s. markets yesterday post the big selloff on wednesday when the dow lost 372 points. the s&p 500 this morning seen up by 5 points. dow jones seen up by 31. the nasdaq could increase by 15 points. let's show you what's happening with the european markets. we are broadly higher. the ftse 100 up by 0.4%. not quite at the record highs that we saw earlier this week. the xetra dax up by 0.4%. that's it for today's show. i'm carolin roth. "worldwide exchange" is up next. have a wonderful weekend. the show's about to start! how do i look?

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>> good morning. global markets rally after the u.s. stock market bouncing back from the worst selloff in months. we'll get you ready for the final trading day of the week. brazilian markets plunge. a political scandal sinks stocks sending the country's benchmark to the lowest level since the 2008 financial crisis. and facebook scores a home run. details of the deal the site signed with mlb. that's coming up. it's friday, may 19, 2017, "worldwide exchange" begins right now. ♪